Florida is a popular destination for businesses looking to move to the sunny south. With more than 300 financial services firms having opened offices in the state in recent years, it's no surprise that it has earned the nickname “The Wall Street of the South”. The COVID-19 pandemic has only increased this trend, with prominent names such as Citadel, Blackstone and Goldman Sachs leaving the New York metropolitan area in favor of Florida's regulations. CRE professionals and budgeters alike would be interested to know how low office rental rates are in Florida.
To get a better understanding of this, let's compare them with typical rental prices in cities that are not as business-friendly as a control. Texas is consistently ranked as one of the nation's best-performing trading states year after year. This is due to its variety of competitive business advantages, such as low gas prices, corporate-friendly tax regulations, reasonable cost of living, affordable office rental prices and access to one of the nation's fastest growing skilled workforces. Office rentals are very affordable in Texas, which is another reason why so many organizations are moving their corporate spaces to the state.
Let's look at the current price of a square foot of space in Texas cities compared to New York and San Francisco. Texas also offers many business-friendly urban options, further strengthening its reputation as one of the top states for business success. Tennessee is another great option for businesses looking to reduce their overall costs. This is because its cost of living is among the lowest in the country.
As a result, those who spend will have more freedom to stimulate local economies and their purchasing power will be stronger. Tennessee is also a central location for the healthcare industry, with five of its ten largest companies being included in these services. Let's take a look at some statistics to better understand why Tennessee is such a great place for businesses. Let's also look at some rental prices in cities in Tennessee.
Florida has one of the most business-friendly tax policies in any state according to the Tax Foundation. Employers also benefit from having more control over their workforce since Florida is a right-to-work state and only 5.6% of its labor force belongs to unions, which is well below the comparable national proportion of 10.6%. The Tax Foundation classified the state as having the most favorable fiscal climate for companies in the country. Hawaii may be an attractive option for some businesses due to its high quality of life, but it is also one of the most expensive states to live and do business in due to its high cost of goods and services.
This may deter some workers from choosing to live there for work. Kentucky may be a good option for certain companies due to its low cost of living and favorable tax climate according to an analysis by the Tax Foundation. However, finding qualified candidates may be more difficult than it would be in many other states due to external factors such as product quality, pricing and planning that can be attributed to poor management. Four out of five of the top states for business are located west of the Mississippi River and Utah ranks highest among them.
The average retail price of electricity per kilowatt-hour is lower than most other states and North Carolina has a more favorable business tax climate than most states according to the Tax Foundation. New York ranks much more favorably for businesses in areas such as technology and innovation and its state economy. Delaware's business climate ranks higher than most states due in part to several innovation measures. New Hampshire offers a high quality of life which contributes to its better-than-average business environment in the state. Its populations are growing rapidly making it an excellent place for companies looking to expand or recruit talent.